The price of Polygon (MATIC) may increase by more than 20% if held at this level.

The price of Polygon (MATIC) has bounced back from the long-term support range and broken above the short-term resistance. Will this help it recover in the coming time?

Trading Range

The price of Polygon (MATIC) has been trading within the range of $0.73 to $0.96 after being rejected by the long-term resistance zone in early November 2023 (red arrow).

During the week of January 22 to 28, 2024, it bounced back from the support of the range and formed a bullish pin bar candle (green arrow), indicating strong buying pressure at this support level.

The weekly RSI indicator has consistently stayed above the 50 level for several weeks, suggesting that the advantage still lies with the bulls.

Therefore, there is a possibility that the price of MATIC will rise to the resistance zone of the range in the near future. This figure corresponds to a potential increase of 21.25% from the current price level.

Short-Term Resistance Breakout

The 4-hour chart indicates that the price of MATIC has broken above a short-term resistance line and confirmed it as support on January 24, 2024 (green arrow).

Although the price has not surged significantly afterward, it has successfully held above the horizontal support zone around $0.76 and formed a higher low.

The 4-hour RSI indicator has broken above the short-term resistance line and risen above the 50 level, indicating that the bullish momentum has regained control.

Therefore, the 4-hour chart supports the potential for price appreciation from the weekly timeframe

Conclusion

The most likely scenario suggests that the price of MATIC has the potential to increase further in the upcoming period. The potential target for this move is $0.96.

The bullish outlook would be invalidated if the price breaks below the support of the range at $0.73 on the weekly timeframe.